Climate Change Data

Environmental Metrics

ESG Focus Areas

• Digital society
• Inclusion for all
• Planet

Environmental Achievements

• Reduced water consumption by 19%
• Reduced business flights by 34%
• 955 network sites are solar powered
• Total GHG emissions reductions 136,510 mtCO2e
• More than 11 tonnes of devices collected for recycling

Social Achievements

• Launched NXT LVL platform for youth, reaching over 3.5 million young people
• Launched Mum & Baby service with 1.4 million registered users
• Invested more than R153 million in education, health and well-being, gender equality and community initiatives
• Achieved Level 1 BEE status in South Africa
• Completed R16.4 billion broad-based Black Economic Empowerment (BBBEE) ownership transaction

Governance Achievements

• All operating markets recognized as Top Employers
• Vodacom certified as continental employer earning the Top Employer Africa accolade
• Implemented Doing What’s Right and Ethics Along the Way programmes, with 1,022 employees attending training

Climate Goals & Targets

Environmental Challenges

• High cost of data
• Consumer privacy concerns
• 'Please Call Me' litigation
• Network quality and coverage challenges
• Uneven rainfall and water scarcity

Mitigation Strategies

• Reduced out-of-bundle data rates by 50%
• Implemented systems to ensure compliance with POPI Act
• Complied with Constitutional Court order in 'Please Call Me' case
• Invested R13 billion in infrastructure to improve network coverage
• Implemented water-wise practices and initiatives, including rainwater harvesting and borehole projects

Supply Chain Management

Supplier Audits: 9 sites audited in 2019

Responsible Procurement

• Code of Ethical Purchasing
• Business Principles
• Supplier Performance Management Programme
• Pre-qualification due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Uneven rainfall, droughts, floods

Transition Risks

• Carbon tax, inconsistent electricity supply

Opportunities

• Investment in renewable energy, energy efficiency

Reporting Standards

Frameworks Used: King IV, CDP, JSE Listings Requirements, FTSE Russell, South African Companies Act of 2008, IFRS, International Integrated Reporting Framework, GRI Standards

Certifications: ISO 14001:2015 (South Africa)

Third-party Assurance: PricewaterhouseCoopers Inc.

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Vodacom's initiatives contribute to these goals through digital inclusion, education programs, job creation, renewable energy investments, and climate-smart networks.

Sustainable Products & Innovation

• Smart meters
• IoT-enabled devices
• Solar-powered base stations
• Low-cost smartphones

Awards & Recognition

• Top Employer Africa
• 25 years of Democracy Transformation Champion Award
• Various Gender Mainstreaming Awards

Environmental Metrics

ESG Focus Areas

• Digital Society
• Inclusion for all
• Planet

Environmental Achievements

• Reduced water consumption in South Africa by 63% since 2015
• Extended the useful life of 308 tons of redundant network equipment
• Responsibly destroyed 1,189 tons of batteries and recycled 977 tons of e-waste
• Total energy costs saved in the 2020 financial year: R24.8 million
• Cumulative diesel savings since financial year 2017: 12,517 kl
• Cumulative GJ energy savings since financial year 2017: 144,234 GJ
• GHG emission reductions 17,607 tCO2e

Social Achievements

• Launched a mental health policy and trained 82 well-being ambassadors
• Retained top employer certification across all Vodacom markets
• Invested R146 million in education, health and well-being, gender equality and other community initiatives
• Connected over 53.2 million financial services customers
• Trained 1,498 girls in coding through Code like a Girl program
• Provided free access to government educational resources and other educational resources through the Vodacom e-School platform

Governance Achievements

• Secured a sustainability-linked loan from Standard Bank South Africa, the first of its kind for a telco in South Africa
• Maintained the highest broad-based black economic empowerment (B-BBEE) contributor score of Level 1

Climate Goals & Targets

Environmental Challenges

• Network-related challenges in South Africa due to load-shedding by Eskom
• Increasing demand for digital services increasing energy consumption
• Data affordability concerns in South Africa
• Road risks, especially for contractors

Mitigation Strategies

• Invested more than R400 million on batteries for network sites in South Africa
• Implementing an energy management strategy to reduce energy usage and carbon emissions
• Accelerated data pricing transformation with discounts on all 30-day bundles, up to 40%
• Implementing the Road Guardian system to monitor and manage health and safety incidents

Supply Chain Management

Supplier Audits: 8

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: King IV, CDP, GRI, International Integrated Reporting Framework

Certifications: ISO 14001:2015 (Midrand Head Office)

Third-party Assurance: PricewaterhouseCoopers Inc.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Raptor project (IoT solution for energy efficiency)
• Smart metering solutions
• mVacciNation (digital health record solution)
• eLabs (pathology management solution)
• Stock Visibility Solution (SVS)
• Connected Farmer application
• MyFarmWeb
• AitaHealth

Awards & Recognition

• Top Employer Africa
• Top Employer in Mozambique
• Silver Employer by the South African Workplace Equality Index (SAWEI) 2019
• Fortune’s 2019 Change the World list

Environmental Metrics

ESG Focus Areas

• Digital Society
• Inclusion for All
• Planet

Environmental Achievements

• Reduced water consumption by 58% in the past three years
• R24.8 million reduction in energy costs for FY20
• 16 372MWh reduction in electricity
• Carbon savings of 17 607 mtCO2e
• Reduced waste sent to landfill by 130 tons
• Re-introduced 308 tons of network equipment for reuse
• Rejuvenated 367 tons of batteries for reuse in the network
• Repaired 316 000 devices at Vodacom’s Advanced Repair Centre

Social Achievements

• Females in senior management average of 30%
• Total employees is 43.5% females
• Various youth and women empowerment programs
• Corporate Social Investment (CSI) initiatives focusing on education, gender-based violence prevention, and health services

Governance Achievements

• ESG targets integrated into Long Term Incentive
• Acquired an ESG loan with clear ESG targets linked to finance cost
• Detailed ESG improvement plan monitored by the ESG committee

Climate Goals & Targets

Environmental Challenges

• Climate change risks
• Circular economy challenges
• Risks in supply chain (including modern slavery)
• Conscious consumerism
• Reducing energy use or sourcing renewables
• Water scarcity
• Protecting biodiversity
• Human capital challenges (gender diversity, pay gap)
• Digital human rights (data security)
• Regulatory challenges
• Brand and reputation risks
• Physical risks (natural disasters)
• Social risks (youth unemployment, disease outbreaks)
• Economic risks (macroeconomic instability)
• Technological risks (cyber threats)

Mitigation Strategies

• Setting long-term carbon reduction targets
• Partnering with WWF and Endangered Wildlife Trust for biodiversity assessment
• Implementing resource reduction strategies (product redesign, take-back schemes)
• Code of Ethical Purchasing and regular supplier audits
• Providing eco-friendly products and services
• Exploring Power Purchase Agreements (PPAs)
• Implementing water efficiency initiatives
• Partnership with WWF and biodiversity assessment with Endangered Wildlife Trust
• Policies aimed at inclusion, diversity, and mental health
• Good data and security structure and governance
• ESG improvement plan
• ESG loan
• Robust governance mechanisms and compliance assessments for EMF

Supply Chain Management

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD, UN Global Compact

UN Sustainable Development Goals

• SDG 17

Vodacom's solutions to drive digital and financial inclusion can enhance the achievement of the SDGs.

Environmental Metrics

ESG Focus Areas

• Digital Society
• Inclusion for All
• Planet
• A Technology Employer
• Responsible Business Practices and Disclosures

Environmental Achievements

• Electricity consumption reduced by 32% in buildings in South Africa
• Reduced GHG emissions by 12 272 mtCO2e
• 1 088 solar-powered sites in operation
• Responsibly discarded 1 066 tonnes of batteries and recycled 573 tonnes of e-waste
• Reduced water consumption in South Africa by 77% since 2017

Social Achievements

• Investment in corporate social investment (CSI) R173 million
• 15.5 million people accessed the ConnectU platform in South Africa
• Enabled financial inclusion for 57.7 million financial services and Safaricom customers
• Launched zero-rated Bright Sky SA app for GBV survivors
• Invested R472 million in skills development at Group level

Governance Achievements

• Vodacom Group maintained AAA rating from MSCI
• Sustainalytics ranked Vodacom Group second out of 196 in its Telecommunications Service industry grouping
• Integrated ESG measures into long-term incentives

Climate Goals & Targets

Environmental Challenges

• South African energy crisis and load shedding affecting operations
• Sporadic battery theft and vandalism at network sites
• Mozambique cyclone damage to infrastructure (estimated US$2.2 million)
• COVID-19 misinformation leading to damage of masts and base stations

Mitigation Strategies

• Investment in lithium-ion batteries
• Exploration of alternative energy sources
• Repair of cyclone-damaged infrastructure
• Swift response to misinformation and collaboration with other operators

Supply Chain Management

Supplier Audits: 65 key suppliers audited in FY21

Responsible Procurement

• Code of ethical purchasing
• Health and safety requirements
• Fair disciplinary practices
• Anti-bribery guidelines
• Responsible sourcing of minerals
• Environmental protection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (droughts and floods)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and solutions
• Investment in renewable energy

Reporting Standards

Frameworks Used: King IV, CDP, JSE Limited Listings Requirements, ESG reporting guidelines and criteria, FTSE Russell, Companies Act, IFRS, IIRC’s International Framework, GRI’s Sustainability Reporting Standards

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Vodacom's initiatives contribute to these goals through digital and financial inclusion, renewable energy, skills development, and community investment.

Sustainable Products & Innovation

• Smart metering solutions
• Raptor project
• Solar home systems (partnership with Fenix)

Awards & Recognition

• Africa’s top employer
• Second out of 196 companies in Sustainalytics’ Telecommunications Service industry grouping
• Top 5% of Sustainalytics’ Global Universe of 13,000 companies
• AAA rating from MSCI
• A- (leadership band) rating from CDP

Environmental Metrics

ESG Focus Areas

• Empowering people
• Protecting the planet
• Maintaining trust

Environmental Achievements

• 105 of 410 network access sites are solar powered
• 12,500 trees planted
• ISO 50001 certified for energy management
• 33 smart electricity meters installed
• 14% reduction in scope 1 and 2 market-based emissions

Social Achievements

• Partnered with African Development Bank to expand network in underserved areas
• 14% reduction in data bundle prices
• 49% Just4You usage
• 5,067 maternity emergency m-mama transportations
• Successful two-month winter robotics bootcamp for 100 children and youth
• 3,965 Code Like a Girl trainees (1,515 in FY2024)
• 160 rural schools received free internet
• LSL 6.2 million spent on bursaries

Governance Achievements

• 100% of employees completed assigned code of conduct, health and safety, anti-bribery and corruption and security training
• Zero fatalities
• Certified Top Employer by the Top Employers Institute

Climate Goals & Targets

Environmental Challenges

• Expanding rural networks with lower ROI due to lower population densities
• Affordability of devices and internet access
• Persistent unequal access to mobile connectivity for women, people with disabilities, and those in low-income communities
• Impacts of climate change on operations and value chains
• Growing global e-waste problem

Mitigation Strategies

• New approaches, partnerships, and technology for universal coverage
• Affordable entry-level smartphones and tailored financial solutions
• Initiatives to reduce data costs and increase bundle validity
• Free access to online platforms
• Embedding climate change into governance processes; assessing climate-related risks and opportunities; leveraging enterprise-wide risk management framework
• Resource efficiency and waste disposal management programmes; responsible recycling of obsolete equipment
• Switching to renewable energy sources; piloting solar-powered lighting; exploring power purchasing agreements

Supply Chain Management

Responsible Procurement

• Encouraging suppliers to adopt sustainable business practices; meeting ethical, labour, and environmental standards

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather

Awards & Recognition

• Certified Top Employer

Environmental Metrics

ESG Focus Areas

• Digital society
• Inclusion for all
• Planet
• Responsible business practices

Environmental Achievements

• TZS1.4 billion invested in energy efficiency projects, resulting in 792MWh of energy saved
• 171 tonnes of plastic saved through the conversion to half SIMs
• 32% reduction in paper use since 2017
• 112,000 trees planted in Dodoma and Pwani regions

Social Achievements

• 38% reduction in maternal deaths through m-mama
• TZS680 billion in Wakala Songesha loans
• 3.2 million registered M-Kulima users
• 500 Tanzanian start-ups reached through the Digital Accelerator programme
• 24% growth in merchants accepting M-Pesa payments to more than 157,000
• 44% female representation in senior leadership
• 564 girls trained under Code Like a Girl programme

Governance Achievements

• Launched an improved supplier qualification process
• 10 years with zero fatalities
• 98% data privacy awareness and training coverage

Climate Goals & Targets

Environmental Challenges

• Increased use of diesel generators impacting net-zero targets and causing noise and air pollution
• High inflation and cost-of-living crisis impacting digital inclusion
• Significant digital divide in Africa
• Expanding rural networks with lower ROI due to lower population densities

Mitigation Strategies

• Seeking alternatives to diesel, including grid connection, fuel cell technology trials, and small-scale on-site renewables
• Initiatives to reduce the cost of data and increase bundle validity
• Upgrading and expanding networks, including 100 2G sites upgraded to 3G and 4G and 138 rural sites upgraded to 3G and/or 4G
• Partnerships to expand rural coverage and deliver universal coverage
• Affordable price packages and customized offers through Just4You

Supply Chain Management

Responsible Procurement

• Code of ethical purchasing
• Slavery and human trafficking statement
• Improved supplier qualification process using risk-based assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Half size SIMs made from recycled plastics

Awards & Recognition

• Certified Top Employer by the Top Employers Institute for the sixth year in a row